Americans are showing a new maturity with their credit cards.
A report from the American Bankers Association showed credit card delinquencies (accounts that are more than 30 days late on payment) made up only 2.41 percent of all credit accounts in the first quarter of 2013.
This is the lowest credit card delinquency rate since 1990, and it’s a big improvement from just a few years ago — in 2009, the credit card delinquency rate was a record 5.01 percent.
The chief economist from the ABA, James Chessen, believes cardholders are acting more responsibly with debt after learning the hard lessons of the Great Recession.
This report showed delinquency rates were down for all 10 categories of debt. More Americans are paying their bills on time for everything ranging from car loans to student loans. The stronger economy is likely contributing to the lower delinquency rate.
This report also showed Americans are getting more confident in carrying a card balance. The number of accounts with a balance is 9 percent higher than from last year.
Americans feel more reassured now that the value of their homes and stock portfolios has recovered, so they feel more comfortable buying on credit.
If the job market continues to improve, Chessen believes delinquency rates will fall even further. Hopefully America can keep up this new trend of better credit management.
Source: money.cnn.com. Photo source: utahdui.biz.
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